Tanzania announces 223 billion cubic feet gas discovery at Mnazi Bay
MTWARA, Tanzania, October 27, 2026 — Tanzania has announced a natural gas discovery estimated at 223 billion cubic feet at Mnazi Bay in the country’s southeast, with Energy Minister Juma Zuberi Homera saying the find could strengthen supplies for electricity generation and industry.
The discovery followed drilling of the Kasa-1X ST2 exploration well by the Tanzania Petroleum Development Corporation (TPDC) and its partner, Maurel & Prom. Homera described it as the country’s first new natural gas discovery since 2015.
The minister said the well was expected to produce about 30 million cubic feet of gas a day for at least 10 years. The supplied announcement gave no production start date or technical classification for the estimated volume, leaving the commercially recoverable quantity unclear.
Two other wells in the block, MB-5 and MS-2, had increased production by more than 65 million cubic feet a day, he said.
The discovery’s immediate significance lies in Tanzania’s domestic energy supply. According to Homera, more than 80 per cent of gas produced at Mnazi Bay goes to TANESCO power plants in Mtwara and Dar es Salaam.
He said additional production could help meet growing industrial demand and reduce exposure to imported energy, whose cost and availability fluctuate with international markets and geopolitical tensions. The announcement provided no estimate of potential savings for electricity consumers or industrial users.
Homera said the government expected additional revenue through its share of profit gas under the production sharing agreement, taxes and TPDC’s participation in the project. According to the minister, TPDC increased its stake in Mnazi Bay from 20 per cent to 40 per cent in 2024.
He also outlined potential uses for gas in fertiliser and petrochemical manufacturing, although the announcement identified no committed projects in those industries.
TPDC was holding discussions with four investors over small-scale liquefied natural gas projects, three of them planned for Mtwara, Homera said. No investment values, final investment decisions or commissioning dates were provided.
On local participation, the minister said approximately 200 Tanzanians had secured work through locally owned companies, while 35 contracts worth more than TZS 20 billion had been awarded to local businesses. The announcement gave no reporting period for those figures.
Tanzanians accounted for 95 per cent of employees in gas production and processing, he said, adding that the Madimba Gas Processing Plant was operated entirely by Tanzanians.
Homera also cited education, healthcare, environmental and women’s empowerment initiatives supported by TPDC and Maurel & Prom in surrounding communities.
The discovery adds to Tanzania’s gas development prospects. Its contribution to reliable power, public revenue and industrial growth will depend on the recoverable volume, the development schedule and the infrastructure needed to bring additional supplies to market.
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